ScoreWhy is Distilleries Co. of Sri Lanka Plc ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 137.94%
- Healthy long term growth as Operating profit has grown by an annual rate 20.34%
- Company has very low debt and has enough cash to service the debt requirements
2
With ROE of 88.71%, it has a very attractive valuation with a 13.75 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 23.21%, its profits have risen by 5.8% ; the PEG ratio of the company is 2.7
3
Consistent Returns over the last 3 years
- Along with generating 23.21% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Distilleries Co. of Sri Lanka Plc should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Distilleries Co. of Sri Lanka Plc for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Distilleries Co. of Sri Lanka Plc
23.21%
3.02
31.72%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.50%
EBIT Growth (5y)
20.34%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
4,515.82
Tax Ratio
43.25%
Dividend Payout Ratio
93.99%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
208.15%
ROE (avg)
137.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
13.75
EV to EBIT
8.90
EV to EBITDA
8.55
EV to Capital Employed
18.89
EV to Sales
4.74
PEG Ratio
2.67
Dividend Yield
0.05%
ROCE (Latest)
212.24%
ROE (Latest)
88.71%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 22,245.9 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 107.31%
NET SALES(Q)
Highest at LKR 14,855.11 MM
-9What is not working for the Company
INTEREST(HY)
At LKR 163.29 MM has Grown at 261.45%
RAW MATERIAL COST(Y)
Grown by 14.67% (YoY
Here's what is working for Distilleries Co. of Sri Lanka Plc
Operating Cash Flow
Highest at LKR 22,245.9 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Operating Cash Flow
Highest at LKR 22,245.9 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Sales
Highest at LKR 14,855.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Dividend Payout Ratio
Highest at 107.31%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Distilleries Co. of Sri Lanka Plc
Interest
At LKR 163.29 MM has Grown at 261.45%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Raw Material Cost
Grown by 14.67% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
